- Nvidia denied reports that it received a subpoena from the Department of Justice over antitrust concerns.
- An Nvidia representative stated, “We have inquired with the U.S. Department of Justice and have not been subpoenaed.”
- Nvidia dominates the data center AI chip market with over 80% market share, according to industry estimates.
Nvidia has denied reports that it received a subpoena from the Department of Justice related to antitrust concerns. The GPU maker claims it made inquiries and was not issued a subpoena.
Nvidia’s Statement
“We have inquired with the U.S. Department of Justice and have not been subpoenaed,” an Nvidia representative told CNBC. “Nonetheless, we are happy to answer any questions regulators may have about our business.”
The denial follows a Bloomberg report on Tuesday stating Nvidia had received a subpoena from the DOJ. The news caused Nvidia’s stock to slip in after-hours trading after falling nearly 10% during regular hours that day.
Nvidia has dominated the artificial intelligence chip market for data centers in recent years, holding over 80% market share by some estimates. This has likely attracted the attention of regulators.
“Nvidia wins on merit, as reflected in our benchmark results and value to customers, and customers can choose whatever solution is best for them,” the company told CNBC.
Background
Nvidia is a leader in graphics processing units (GPUs) which have become critical for artificial intelligence workloads. The company’s data center business has grown rapidly as demand for AI chips takes off.
Competitors like AMD and Intel have trailed Nvidia in the AI chip market. But as the category grows, regulators appear to be taking a closer look at Nvidia’s commanding market share.
It’s unclear if the Department of Justice has any active investigations into Nvidia’s business practices. The company maintains it has not been subpoenaed by the DOJ as of yet.
Looking Ahead
Nvidia will likely face heightened scrutiny as its data center business expands. But the company believes it has earned its market position fairly and sees no issues cooperating with regulators.
While no formal antitrust probe has been confirmed, Nvidia is on the radar of authorities monitoring competition in the semiconductor industry. The company says it’s ready and willing to address any regulatory concerns about its dominance in AI computing
